Commentary and Tracking of a Portfolio of Stocks using approach from "The Little Book that Beats the Market" by Joel Greenblatt aka Magic Formula Investing

Thursday, March 06, 2014

Post IPO Results

As my readers know, I have started "speculating" a small amount of firms post their IPOs. I say speculating as these are not necessarily value stocks (though I felt FGL was). Here is a table showing my success this far:

Date

Stock

O/C

Purchase

Sold

$ Gain

% Gain

Current

10/18

VJET

Cl

22.09

24.13

2,040

9.2%

35.75

10/30

SCAI

Cl

26.80

26.95

465

0.6%

31.77

12/11

ATHM

Cl

28.80

35.03

18,690

21.6%

51.76

1/31

MBUU

Cl

17.50

19.18

6,720

9.6%

20.85

2/13

FGL

Op

19.75

22.29

2,108

11.0%

22.29

2/27

LMNS

Op

12.94

12.80

-1,110

-1.1%

12.80

Grand Total

28,913

Now, you can see my gain has been (with my multiplier) almost $29,000. That is quite good when you consider I have held most of these less than a month. The interesting component is what they have done since I sold them. They have gone up an aggregate of $69,000 since I sold!!!! Whoa. I could not believe ATHM was now $51.76. Of course, these are volatile plays. Recall VJET (now $35.75) at one point topped $70!

I think the moral of the story is that I will continue to dabble in this market and I will be a little more patient to hopefully reap a little additional profit. We will see if LMNSspikes. And there are a couple companies going public today and tomorrow. Stay tuned.

geeks note: The FGL numbers above are a bit strange as I bought FGL initially at 19.75 and sold at $19.80. But then rebought at 20.01. The table above really illustrates my current open holding but my overall gain.